International Council on Mining and Metals (2007) 'Ghana: Country Case Study. The Challenge of Mineral Wealth: Using Resource Endowments to Foster Sustainable Development'

Recognizing that resource projects can have both negative and positive local economic, environmental and social effects, Precept 5 outlines the internationally accepted frameworks governing resource extraction. The report provides insights on the decision to extract and some of the challenges and successes of mining companies in providing benefits to local communities.

The International Council on Mining and Metals report assesses the positive and negative socio-economic impacts of mining projects in Ghana. Evidence is drawn from a mine operated by AngloGold Ashanti. At a national level mining in Ghana has provided a strong positive influence upon the recovery of macroeconomic growth post 1986. Additionally, those living close to mining operations have benefited from poverty reduction and improvement of social welfare indicators. However, local communities feel not enough is being done. This is partly attributable to unmanaged expectations, such as that AngloGold Ashanti would take over local government functions in the absence of public service delivery.

 The report suggests that only a minimal critical level of governance is required in specific areas to enable economic recovery in sectors such as mining to occur. In the case of Ghana, mining companies developed their own ad hoc responses to the absence of governance institutions. In concluding, the authors retrospectively consider whether mining ought to have continued with an absence of governance, finding that the effectiveness of social action was reduced but benefits did ultimately reach local communities, thereby suggesting that the right decision was made in continuing with mining. 

 Access the report here.

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